Running a business is a lot of work. Unfortunately, it can also lead to lawsuits from different parties if things go wrong.
This can be a big stressor for anyone involved, especially since it wastes time and resources. Fortunately, the right business litigation lawyer can help. Here are five common types of business litigation cases a lawyer can help you with:
Breach of Contract
Contracts are a vital part of many business relationships. However, they could be more foolproof, and mistakes can happen that result in the breach of a contract. A lawyer can help you review a contract before you sign it to ensure that it represents your understanding of its terms. They can also help you draft legally sound contracts.
If you have suffered a loss due to the breach of a contract, several remedies are available. These may include monetary damages or court-ordered performance of the original contract, known as specific performance.
In the case of a minor breach of contract, such as when a catering company misses your deadline for delivering food to your party, you can recover consequential damages. This type of damage is intended to cover losses directly related to the breach.
Shareholder Disputes
Business litigation can be a complex matter involving numerous parties and intricate issues. A business litigation lawyer can help you manage this process to protect your business.
Shareholders have a stake in a company’s success and may disagree with decisions that affect its value. These disagreements can lead to shareholder disputes.
Disputes may stem from breaches of terms in a shareholder agreement. This can include selling shares outside the agreed-upon terms or breaching a duty to another shareholder.
Other reasons shareholders should seek legal action could be that a company misappropriates funds. This can include skimming cash before it’s officially recorded, using company credit cards for personal purchases, and submitting fraudulent expense reimbursement claims. All of these actions violate fiduciary duties owed to all shareholders.
Partnership Disputes
Business partners may have differing views on many issues, including how to share profit and how much to spend on marketing. Business partners must have a written agreement establishing these and other issues before entering into any partnership arrangement.
Unethical behavior negatively affecting the company is also a common cause of partnership litigation, such as embezzlement. These acts violate a partner’s fiduciary duty and may result in criminal charges and civil causes of action.
Contract Disputes
Contract disputes can arise in some ways. They often stem from misunderstandings of terms and conditions or ambiguities that allow each party to interpret the contract in the light most favorable to themselves. A common mistake in contracts is the inclusion of personal guaranties, which expose individuals to breach of contract lawsuits when they violate their side of the bargain. Another contract dispute is when a business or its employees violate a non-disclosure or non-compete agreement and leak sensitive information to competitors or the general public.
When the actions of a business have harmed a person, it is important to have an attorney skilled in business litigation that understands how to prove economic damages and recover compensation for the harm caused. These cases can be complex and take years to resolve.
Fraud
Managing a business is an intense endeavor. The day-to-day responsibilities often need more time to research and understand the possible ramifications of any given action. This can make it hard for a business to spot issues that may lead to a lawsuit and cause businesses to overlook opportunities to settle disputes outside of court.
Contracts are found in almost every aspect of a business, from terms of employment to transactions for goods and services. It’s not uncommon for these contracts to be breached, which can cause serious financial harm to businesses.
Fraud cases can be complex, involving both contract and tort law. To win a fraud claim, the plaintiff must demonstrate that they relied on false statements or omissions during a transaction and that this reliance caused them to suffer monetary losses.